Why is Hindustan Construction Company Ltd ?
1
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.87
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.87
- The company has been able to generate a Return on Equity (avg) of 1.71% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of -13.60% over the last 5 years
3
Negative results in Mar 26
- NET SALES(Q) At Rs 992.20 cr has Fallen at -27.77%
- PBT LESS OI(Q) At Rs 66.65 cr has Fallen at -56.93%
- PAT(Q) At Rs 58.94 cr has Fallen at -34.6%
4
79.74% of Promoter Shares are Pledged
- In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices
- The proportion of pledged holdings has increased by 6.46% over the last quarter
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Hind.Construct. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Hind.Construct.
-28.53%
-0.55
51.48%
Sensex
-6.84%
-0.53
12.96%
Quality key factors
Factor
Value
Sales Growth (5y)
-13.60%
EBIT Growth (5y)
16.38%
EBIT to Interest (avg)
0.87
Debt to EBITDA (avg)
3.63
Net Debt to Equity (avg)
0.20
Sales to Capital Employed (avg)
3.36
Tax Ratio
25.77%
Dividend Payout Ratio
0
Pledged Shares
79.74%
Institutional Holding
15.05%
ROCE (avg)
-67.33%
ROE (avg)
1.71%
Valuation Key Factors 
Factor
Value
P/E Ratio
38
Industry P/E
41
Price to Book Value
2.57
EV to EBIT
10.94
EV to EBITDA
10.41
EV to Capital Employed
2.31
EV to Sales
1.48
PEG Ratio
0.30
Dividend Yield
NA
ROCE (Latest)
21.11%
ROE (Latest)
6.85%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Bullish
Bullish
Technical Movement
0What is working for the Company
NO KEY POSITIVE TRIGGERS
-14What is not working for the Company
NET SALES(Q)
At Rs 992.20 cr has Fallen at -27.77%
PBT LESS OI(Q)
At Rs 66.65 cr has Fallen at -56.93%
PAT(Q)
At Rs 58.94 cr has Fallen at -34.6%
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 458.39 cr
DEBTORS TURNOVER RATIO(HY)
Lowest at 1.76 times
Loading Valuation Snapshot...
Here's what is not working for Hind.Construct.
Net Sales - Quarterly
At Rs 992.20 cr has Fallen at -27.77%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 66.65 cr has Fallen at -56.93%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 58.94 cr has Fallen at -34.6%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 458.39 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio- Half Yearly
Lowest at 1.76 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






